Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $57,800 and purchasing department expenses of $57,800 of Cozy Bookstore

image text in transcribedimage text in transcribedimage text in transcribed

Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $57,800 and purchasing department expenses of $57,800 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Department Books Magazines Newspapers Total Sales $ 184,900 107,500 137,600 $ 430,000 Purchase Orders 816 476 408 1,700 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Complete this question by entering your answers in the tabs below. Allocation of Exp Alloc of Serv Dept Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 Advertising Department Books Magazines Newspapers Totals 0 0 0 Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 Purchasing Department Books Magazines Newspapers Totals 0 0 Allocation of Exp Alloc of Serv Dept Complete the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. (Amounts to be deducted should be indicated with minus sign.) COZY BOOKSTORE Departmental Expense Allocation Spreadsheet Expense Totals Advertising Purchasing Books $ 578,000 $ 57,800 $ 57,800 $ 138,700 Magazines Newspapers $ 115,600 $ 208,100 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated $ 578,000 $ 57,800 $ 57,800 $ 138,700 $ 115,600 $ 208.100

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, George Foster, Srikant M. Datar

9th Edition

0306457229, 978-0306457227

More Books

Students also viewed these Accounting questions

Question

What do you think is likely to be Liams problem? Discuss.

Answered: 1 week ago

Question

What laws were passed because of domestic violence?

Answered: 1 week ago